Important
Tax rules keep changing. The information in this lesson is general and may not reflect the latest rulings from Lithuania's tax authority (VMI) or recent legal changes. Always check with an accountant or tax advisor before filing. More information: VMI
Taxes for individuals β how to declare crypto profit in Lithuania
Crypto taxation in Lithuania is logical β once you get one rule, you can file it yourself. The core rule is simple: sold at a profit β pay 15% GPM. All that's left is the details, which we'll unpack below.
Note: this lesson describes Lithuanian tax rules specifically (GPM, VMI). If you're filing in another country, the underlying logic is usually similar, but the rates, forms, and deadlines will differ β check your own country's tax authority.
A simple analogy
Crypto taxes work like stock taxes. Purchase price minus sale price = profit. 15% of the profit. If you didn't sell, you owe nothing.
The core rule: 15% GPM
GPMGPMGPM β Lithuanian personal income tax; 15% on realised crypto gains.Read the lesson β (Lithuania's personal income tax) β 15% of realized profit:
| What happened | Profit | Tax |
|---|---|---|
| Bought SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β for 500 EUR, sold for 800 EUR | 300 EUR | 45 EUR |
| Bought ETH for 1000 EUR, sold for 900 EUR | -100 EUR (loss) | 0 EUR |
| Bought USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β for 100 EUR, sold for 102 EUR | 2 EUR | 0.30 EUR |
The GPMGPMGPM β Lithuanian personal income tax; 15% on realised crypto gains.Read the lesson β law also sets an annual tax-free amount for gains on selling other assets (crypto included) β currently 2,500 EUR: the 15% only applies to the profit above that threshold. The table examples above are simplified and ignore this threshold β check the current amount with VMI.
Realized vs unrealized profit
Unrealized profit β the price went up, but you haven't sold yet. No tax.
Realized profit β you sold, you got money. 15% tax.
A swap (SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β β USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β) counts as a sale too!
When do you need to declare?
Annual return β by May 1st
Every year by May 1st you declare last year's income through the VMI system.
Gather your transaction history
Export CSVs from Nexo, Kraken, Deribit, Jupiter. Or use Koinly.
Calculate profit/loss
For each sale: sale price - purchase price = profit. FIFO method (First In First Out β first bought, first sold).
Fill in the GPM return
The VMI EDS system (deklaravimas.vmi.lt). Form GPM311 β income from the sale of assets.
Pay the tax
Payment deadline β by May 1st, or as instructed by VMI.
What's taxable?
A swap counts as a sale!
Many people forget this: swapping SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β into USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β through Jupiter counts as a sale. If SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β's price rose since you bought it β that's realized profit, and tax is due.
Stablecoin trades
Even stablecoin trades (USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β β USDTUSDTTether USD stablecoin. An alternative to USDC. Liquidity on Solana has historically been smaller β most Solana DeFi liquidity is still in USDC.Read the lesson β) can generate a profit or loss. Reason: the EUR/USD exchange rate changes.
Example:
- Bought 1000 USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β when EUR/USD = 1.10 β paid 909 EUR
- Sold 1000 USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β when EUR/USD = 1.05 β received 952 EUR
- Profit: 43 EUR β tax 6.45 EUR
Offsetting losses
If you had losses β you can offset them against profit from the same year:
| Profit from SOL | Loss from ETH | Net profit | Tax |
|---|---|---|---|
| +500 EUR | -200 EUR | 300 EUR | 45 EUR |
| +500 EUR | -600 EUR | 0 EUR (loss) | 0 EUR |
Carrying losses forward
For individuals, a loss from selling assets can only be offset against profit from the same year β GPMGPMGPM β Lithuanian personal income tax; 15% on realised crypto gains.Read the lesson β does not allow carrying it forward into future years. Check with an accountant, as rules can change.
Tools for calculating taxes
Koinly (recommended)
| Feature | Detail |
|---|---|
| Networks | SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson β, EthereumEthereumA blockchain with smart contracts. We use Aave (lending) and Uniswap (LP) on it.Read the lesson β, all major CEXsCEXCentralized Exchange β a centralized exchange (e.g. Nexo, Kraken, Binance). Requires KYC.Read the lesson β |
| Price | From $49/year |
| Reports | Tax report, profit/loss |
| Integration | NexoNexoA centralized exchange (CEX) for buying crypto with euros. Custodial β the exchange holds the keys.Read the lesson β, Kraken, DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls. CSV import |
| DeFiDeFiDecentralized Finance β financial services without intermediaries, operating through smart contracts.Read the lesson β | Supports LPLPLiquidity Provider β deposits tokens into a pool and earns a share of trading fees.Read the lesson β, staking, airdrops |
CoinTracking
| Feature | Detail |
|---|---|
| Networks | EthereumEthereumA blockchain with smart contracts. We use Aave (lending) and Uniswap (LP) on it.Read the lesson β, SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson β, CEXsCEXCentralized Exchange β a centralized exchange (e.g. Nexo, Kraken, Binance). Requires KYC.Read the lesson β |
| Price | From $10.99/month |
| Advantage | Very detailed transaction analysis |
Koinly β the best choice
Koinly supports SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson β, EthereumEthereumA blockchain with smart contracts. We use Aave (lending) and Uniswap (LP) on it.Read the lesson β, and every major CEXCEXCentralized Exchange β a centralized exchange (e.g. Nexo, Kraken, Binance). Requires KYC.Read the lesson β. It imports your transactions automatically and calculates profit/loss.
DeFi specifics
LP fees
Every time you collect fees from OrcaOrcaA Solana DEX with concentrated liquidity (Whirlpool). The basis of our LP strategy on the Solana network.Read the lesson β, UniswapUniswapAn Ethereum concentrated-liquidity protocol (V3/V4). Its Solana counterpart is Orca.Read the lesson β, or MeteoraMeteoraA Solana DLMM (bin-based) liquidity protocol. An alternative to Orca, with dynamic fees.Read the lesson β β that's income. Koinly can track it automatically.
Options premiums (Deribit)
- Sold a PutPutAn option type that grants the right to SELL at a set price. Used as insurance. = received premium = income
- Sold a CallCallAn option type that grants the right to BUY at the strike price. The opposite of a put. = received premium = income
- Bought a PutPutAn option type that grants the right to SELL at a set price. Used as insurance. = an expense (can offset against profit)
Lending interest (Kamino, Aave)
Interest on your collateral β income, taxed at 15%.
Common mistakes
- Forgetting swap transactions β SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β β USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β is a sale
- Not tracking DeFi income β LPLPLiquidity Provider β deposits tokens into a pool and earns a share of trading fees.Read the lesson β fees, staking rewards
- Using the wrong purchase price β always FIFOFIFOFirst In, First Out β a tax-accounting method: the first units bought are treated as the first sold.Read the lesson β
- Not declaring an airdrop β it's income at the moment you receive it
- Forgetting stablecoin gains β the EUR/USD rate moves
Check with an accountant!
Lithuania's crypto tax rules are still evolving. This lesson is general information, NOT tax advice. Always check with an accountant before filing your return.
Summary
| Rule | Detail |
|---|---|
| Rate | 15% GPMGPMGPM β Lithuanian personal income tax; 15% on realised crypto gains.Read the lesson β on profit |
| Filing | By May 1st, VMI EDS |
| Method | FIFOFIFOFirst In, First Out β a tax-accounting method: the first units bought are treated as the first sold.Read the lesson β (first bought, first sold) |
| SwapSwapExchanging one token for another. E.g. SOL to USDC via Jupiter.Read the lesson β = sale | Yes, always |
| Tool | Koinly (recommended) |
| Losses | Offset against the same year's profit only |
UAB and other legal entities
If you're planning to manage a larger DeFiDeFiDecentralized Finance β financial services without intermediaries, operating through smart contracts.Read the lesson β portfolio, or want a clearer tax structure, it can be worth operating through a company (a UAB). This section explains why that can help, how to open exchange accounts, and what you need to know.
A simple analogy
A UAB is like a separate pocket for your money. If something goes wrong, you only risk what's in that pocket, not everything you own. This is called "limited liability".
Why a company (UAB)?
| Aspect | Individual | UAB (company) |
|---|---|---|
| Taxes | 15% on profit | 16% corporate tax (6% for small companies) |
| Deductions | Limited | Salaries, equipment, software |
| Liability | Personal (you risk everything) | Limited (you risk only company assets) |
| Deribit access | Limited in the EU | Full access via a corporate account |
When is setting up a UAB worth it?
A legal entity is recommended when:
- Your portfolio is bigger than 50,000 EUR
- You're planning to trade options (DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.)
- You want professional tax accounting
- You're managing other people's money
For small portfolios (up to 10,000 EUR), staying an individual is simpler and cheaper.
Exchange accounts for companies
Kraken Business Kraken
Kraken is one of the best exchanges for companies. It has a dedicated business product.
Registration process:
Apply through the Kraken Business page
Go to kraken.com/institutions or kraken.com/business. Fill in the application.
Submit your company documents
You'll need: certificate of registration, articles of association, shareholder list, director's passport, proof of company address.
Wait for approval
Kraken Business approval takes 5-15 business days. That's longer than for an individual.
Connect your company bank account
Connect a business bank account for SEPA transfers. Important: the account must be in the COMPANY's name, not personal.
Start operating
Once approved, you can deposit euros and buy crypto. All transfers β only to/from the company account.
Kraken Business advantages:
| Feature | Detail |
|---|---|
| SEPASEPAA European banking system for cheap or free euro transfers between EU banks.Read the lesson β transfer | Yes (from a business account) |
| Fees | 0.16-0.26% (Pro) |
| API access | Yes (automation) |
| Report export | Yes (CSV, API) |
Binance Institutional
- Apply through binance.com/institutional
- Submit company documents (similar to Kraken)
- ApprovalApprovalPermission you grant a protocol to use tokens from your wallet. Review it periodically.Read the lesson β: 5-20 business days
- Connect a business bank account
| Feature | Detail |
|---|---|
| Fees | 0.075-0.10% |
| Sub-accounts | Yes (separate strategies) |
| Liquidity | The biggest in the world |
What are sub-accounts?
Sub-accounts are like separate folders under one account. You can have one folder for an SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β strategy, another for an ETH strategy. All under one company, but kept separate.
Deribit Corporate Deribit
DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls. is the main crypto options exchange. Access can be limited for individuals in the EU, so a corporate account is the best solution for options.
Why go corporate on Deribit:
| Feature | Individual (EU) | Company |
|---|---|---|
| Access | Limited in some countries | Full access |
| OptionsOptionA financial contract that grants the right (but not the obligation) to buy or sell at a set price. (SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson β, ETH, BTC) | Limited | Full |
| Sub-accounts | No | Yes |
Registration process:
Create an account at deribit.com
Create an account and choose the "Corporate Account" type.
Submit KYB documents
KYB (Know Your Business β the identification procedure for companies) is like KYC (Know Your Customer), but for companies. You'll need: registration documents, ownership structure, director's documents, description of activity.
Deribit's KYB is stricter. Prepare every document in advance.
There may be an interview
Deribit may ask further questions about the company's activity.
Approval
The process can take 2-4 weeks. Once approved, you get full access.
Depositing funds
Deribit only accepts crypto (BTC, ETH, USDC, SOL). Send it from your Kraken or Binance business account.
Deribit does NOT accept euros!
DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls. doesn't accept bank transfers. You fund the account with crypto. The route: Bank β Kraken (SEPASEPAA European banking system for cheap or free euro transfers between EU banks.Read the lesson β, euros) β USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson β β DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.
Multisig wallets β multi-signature security
When you operate as a company, it matters that DeFiDeFiDecentralized Finance β financial services without intermediaries, operating through smart contracts.Read the lesson β funds are managed safely. Multisig (multi-signature) wallets require several people to approve every transaction.
What is multisig?
MultisigMultisigA multi-signature wallet β a transaction requires approval from multiple people.Read the lesson β is like a safe with two keys. It takes two people (e.g., a director and a finance officer) to open it. If one loses their key β the money is still safe. If one wants to steal it β they can't do it alone.
Squads (Solana) SOL
How it works:
- You create a Squads wallet with 3 members
- You set it to require 2 of 3 signatures
- One member initiates a transaction
- Another member approves it
- The transaction only executes once enough signatures are collected
Safe (Ethereum) ETH
| Feature | Detail |
|---|---|
| Network | EthereumEthereumA blockchain with smart contracts. We use Aave (lending) and Uniswap (LP) on it.Read the lesson β, ArbitrumArbitrumAn Ethereum Layer 2 network. Cheaper and faster transactions than Ethereum mainnet.Read the lesson β, and others |
| Website | safe.global |
| How it works | Configurable (e.g. 2-of-3) |
| DeFiDeFiDecentralized Finance β financial services without intermediaries, operating through smart contracts.Read the lesson β integration | AaveAaveEthereum lending protocol (v3). In our strategy: ETH collateral to a USDC loan.Read the lesson β, UniswapUniswapAn Ethereum concentrated-liquidity protocol (V3/V4). Its Solana counterpart is Orca.Read the lesson β, and everything else |
| Fee | Free (network fee only) |
Multisig β the company standard
If you manage a DeFiDeFiDecentralized Finance β financial services without intermediaries, operating through smart contracts.Read the lesson β portfolio through a UAB:
- Solana: use Squads (squads.so)
- Ethereum/Arbitrum: use Safe (safe.global)
Recommended: 2-of-3 signatures (e.g., director + finance officer + backup).
Taxes in Lithuania β overview
Individual
| Aspect | Detail |
|---|---|
| Tax rate | 15% on profit |
| When it's due | The year of the sale (not the purchase) |
| Filing | Annual return (by May 1st) |
| DeFiDeFiDecentralized Finance β financial services without intermediaries, operating through smart contracts.Read the lesson β income | Treated as income, 15% |
Legal entity (UAB)
| Aspect | Detail |
|---|---|
| Corporate tax | 16% (or 6% for small companies meeting the criteria) |
| VAT | Doesn't apply to crypto |
| Bookkeeping | Professional accounting required |
| Deductible costs | Internet, equipment, software, fees |
Check with a tax specialist!
Crypto tax rules keep changing. This information is general, NOT tax advice. Before setting up a UAB, always check with an accountant familiar with crypto.
Accounting tools
DeFi Risk OS + accounting
The DeFiDeFiDecentralized Finance β financial services without intermediaries, operating through smart contracts.Read the lesson β Risk OS platform will eventually have a built-in profit/loss export. For now, we recommend Koinly β it supports both SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson β and EthereumEthereumA blockchain with smart contracts. We use Aave (lending) and Uniswap (LP) on it.Read the lesson β.
Recommended structure for a UAB portfolio
UAB "Crypto Strategies"
βββ Kraken Business (euros β SOL/ETH purchase)
β βββ SEPA from the business account
β βββ SOL/ETH β transferred to multisig
βββ Deribit Corporate (options strategies)
β βββ USDC from Kraken β Deribit
β βββ Put Spread + Covered Call
βββ Squads Multisig (Solana DeFi)
β βββ SOL collateral β Kamino
β βββ USDC β Orca LP
βββ Safe Multisig (Ethereum DeFi)
βββ ETH collateral β Aave
βββ USDC β Uniswap LP
Step by step β setting up a UAB
Register the UAB
Register the UAB at the Register of Legal Entities. Minimum capital: 1,000 EUR (since 2023). This can be done through a notary or online.
Open a business bank account
Recommended banks: Swedbank, SEB, or Wise Business. The account must be in the UAB's name.
Find a crypto accountant
It's essential to find an accountant who understands crypto. The number of such specialists in Lithuania is growing fast.
Open a Kraken Business account
Submit the UAB's documents. Connect the business bank account for SEPA transfers.
Open a Deribit Corporate account
Submit KYB documents. The process takes 2-4 weeks. Deribit only accepts crypto β send it from Kraken.
Set up a multisig wallet
Solana: Squads (squads.so). Ethereum: Safe (safe.global). Set it to 2-of-3 signatures.
Start operating
Euros β Kraken β SOL/ETH β Multisig β DeFi protocols. Part of the USDC β Deribit β Options.
Frequently asked questions
Do I need a special license?
No, as long as you're investing your own (company) funds. If you manage other people's money β you may need a crypto-asset service provider (CASP) license under the EU's MiCAMiCAThe EU crypto-asset regulation (Markets in Crypto-Assets). regulation.
How much does setting up a UAB cost?
~200-500 EUR (notary + registration). Minimum capital: 1,000 EUR (since 2023).
Can I operate as a sole trader instead?
You can, but a UAB is better β it has limited liability and more tax options.
What accounting software should I use?
Koinly (crypto export) plus standard accounting software (Rivile, e-buhalteris).
Summary
A legal entity (UAB) gives you a structured approach to DeFiDeFiDecentralized Finance β financial services without intermediaries, operating through smart contracts.Read the lesson β strategies:
- Full access to DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls. options
- Professional tax accounting
- Limited personal liability
- MultisigMultisigA multi-signature wallet β a transaction requires approval from multiple people.Read the lesson β security
This wraps up Module 2. You can now operate on your own: you protect your assets, spot scams, understand the risks, and keep your taxes and legal setup in order. In the next module we'll start looking at DeFiDeFiDecentralized Finance β financial services without intermediaries, operating through smart contracts.Read the lesson β LendingLendingLending/borrowing in DeFi. You deposit collateral and receive a loan in stablecoins.Read the lesson β logic.
Taxes only look scary until you lay your own numbers out in a table. This will take about 20 minutes and save you a lot of stress before the filing deadline.
Always check filing deadlines and rates on the official VMI website or with an accountant β not on forums. This lesson is not tax advice.
This is learning, not investing β use only small amounts you treat as tuition.
You just built your own tax system and finished the entire security module β you now know more about crypto accounting than most people who file blindly year after year.